The market around Gary, IN has been improving.

Some loitering on corners/storesF - Open air drug market.

This would buy time to improve cash flow or explore better refinancing options.Ask Your Lender: Would they consider lowering the rate temporarily or extending the loan period while you stabilize cash flow?

There’s huge retal income potential if you nail that balance between improvements that wow tenants and improvements that merely look fancy but don’t justify higher rents.I’d also keep an eye on how your high end plan fits the local demand.

While I’m open to both turn-key and fixer-upper properties, my preference leans slightly toward value-add opportunities where I can improve the property and increase equity or cash flow.That said, I’m also happy to consider turn-key options that provide immediate cash flow if they fit within my investment strategy.

They may argue they couldn't pay you because they just made a $10,000 improvement to the house. 

You are prepared to walk away from a deal.Not going to give you the answer (maybe if you were Army or Air Force) LOL, but here is the approach. 

As others have said, the best thing your son can do is run far from this deal, buckle down, save his pennies (he probably already is doing this), house-hack, and improve a property with sweat, hard work, developing a DIY skillset, and self-managing tenants. 

I had a tenant force me to pay for some dumb azz air quality test where she claimed my air was bad and making her sick. 

If there is minor rehab (such as painting and cosmetic improvements) you can still close on a DSCR loan, however it may affect your appraised value, which could also affect your market rent if its a vacant property.